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SnapCap Business Loans

Rachel Morey Rachel Morey Last update:
Loan Amount
$5,000-$600K
Min Credit Score
500
Funding time
2

SnapCap, based in South Carolina, is a provider of short-term unsecured business loans. It’s a stand-alone alternative lender owned by LendingTree. While LendingTree is a loan marketplace where businesses and individuals can find all types of financing with LendingTree’s partners, SnapCap is a direct lender owned by LendingTree.

For businesses that need quick access to money to solve cash flow problems, SnapCap could be a good solution. The cost of borrowing money varies. According to reviewers, business owners with good credit may be able to find less expensive funding options.

The company offers same-day loan approval for qualified applicants, and you could get funds deposited into a bank account within 48 hours. Flexibility is a plus with SnapCap. Borrowers can pay back their loans daily or weekly.

SnapCap offers several options for qualified businesses that need access to money in a short amount of time. Even if the owner has a personal credit score in the lower tiers, and they haven’t established a credit history for the business, it may be possible to get funding with this lender.

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SnapCap Loan Types Available

Small business loans

  • Approved applicants can get funding in just 48 hours.
  • All types of loans are $5,000 to $600,000 with terms from three to 36 months, depending on whether you meet the requirements for the loan amount you request.
  • Small business loans from SnapCap are unsecured, which means there’s no need to provide collateral to secure the loan.
  • Approval criteria includes current business performance; not assets.

Minimum requirements for all types of loans include monthly gross revenue of $8,500 or more and a minimum of six months in business. The business owner must have a personal FICO credit score of at least 500. Expect to provide a minimum of three months of business bank statements, as well. Businesses that get approved for financing through SnapCap must be based in the United States.

SnapCap does impose fees that may include origination fees depending on the type of loan and the business’ qualifications. While the SnapCap website does not offer a specific fee range or interest rate range, they do note that their rates are clearly stated as a fixed simple interest rate in the funding documents provided before closing the loan.

Working capital

This type of unsecured business loan can be used for nearly any reason. Over time, many businesses experience a decline in their working capital ratio. This could reduce their ability to expand marketing plans, pay down debt, purchase inventory, and make improvements to property or buy new equipment.

Without a solid personal credit history, it may be difficult for business owners to get access to an unsecured business loan through a credit union or bank. Financing day-to-day operations with a flexible working capital loan from SnapCap is a viable option for business owners with a credit score above 500.

Expansion loans

Startups and small businesses can use an expansion loan to grow their company. Many startups can’t meet the funding requirements of traditional lenders. New companies that are more than six months old are eligible to apply for a SnapCap expansion loan. This requirement could exclude some brand-new startups.

Small businesses may need extra money to take advantage of short-term opportunities that would allow them to meet growth benchmarks. Alternative lending makes it possible for less-stable firms to access the cash they require based on their sales record and history of profits instead of their time in business or their business credit score.

Inventory loans

For seasonal businesses, the need for inventory in the face of a cash shortage causes insurmountable problems. Often, the only answer is an inventory loan. Companies that sell products with a short shelf life may also need a flexible loan option that helps them meet their customers’ demands.

Traditional lenders may require collateral along with a solid credit history before they’ll provide funds to seasonal businesses. SnapCap inventory loans are unsecured and have a shorter term of six to 18 months, which is a better fit for many small and medium-sized businesses that rely on seasonal revenue to help them reach their goals.

Pros

  • Great reviews indicate a strong customer service team
  • Fast funding for approved applicants
  • Access to a dedicated loan officer to help applicants through the process
  • Flexible repayment options include weekly or daily payments

Cons

  • No information on the website about interest rates and fees
  • Minimum loan amount of $5,000 may be too high for some small businesses
  • Loans may include origination fees

Application Process

As a business owner, you can apply for a SnapCap business loan online. There’s a pre-approval process that asks three questions. You’ll provide a range of your time in business, an estimate of the business’s annual revenue, and an estimate of your credit score.

If you get pre-approved after voluntarily submitting this information, you’ll move on to the rest of the application.

The business name, applicant’s first and last name, email address, and the business owner’s phone number and birth date are required on the next screen. You’ll answer questions about the business industry, whether it’s home-based, and what percentage of the business the applicant owns.

Next, you’ll indicate the approximate amount of funding you require, the rough amount that was credited to your main business account last month, your approximate ending business bank balance at the end of your previous complete month in business, and the estimated number of deposits last month.

Then, you’ll choose the type of loan you’d like to apply for from a drop-down menu:

  •       Working Capital
  •       Inventory
  •       Equipment purchase
  •       Payroll
  •       Expansion
  •       Other

There’s just one application to get pre-approved for any type of business loan offered by SnapCap, which should take less than ten minutes to complete. SnapCap’s website does not indicate whether they conduct a hard pull or soft pull of credit, but the pre-qualifying application does not ask for a Social Security or Employer Identification Number, which is necessary for a hard pull of credit.

Privacy & Security

SnapCap has a 4.8 out of 5 Trustpilot score. 90% of reviewers ranked their experience with the company as “excellent.”

Reviewers who gave lower scores noted that the fees were high compared to other companies. As mentioned previously, the SnapCap website does not disclose their origination fees and interest rates until after a business receives approval for funding.

The company also has an A+ rating from the Better Business Bureau.

Customer Support

SnapCap offers live one-on-one customer support via phone Monday through Friday between 9 am and 7 pm eastern standard time. Reviewers speak highly of the customer support team.

Final Thoughts

SnapCap seems to be a reliable US-based alternative lending option for businesses that need fast funding and can’t get a loan through their bank or credit union. Because the fees and interest rates aren’t disclosed, and reviewers note that the prices are high compared to competitors, it’s a good idea to shop around and try to get pre-approval from several different business loan providers before agreeing to a SnapCap loan.

Address

701 E Bay St, Suite 414

Charleston, SC 29403

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Rachel Morey Rachel Morey
Rachel Morey is a journalist specializing in finance content. She has written for some of the major lenders in the online personal and business finance industry. She has been writing professionally for nearly a decade and has projects in print and broadcasting. A native Iowan, Rachel has a special fondness for the open roads of rural America.
This review is based on the writer's personal opinion.